Prime Minister Narendra Modi said that eight years since GST was introduced, it stands out as a landmark reform that has reshaped India’s economic landscape.
Annual GST revenues nearly tripled, rising from Rs 7 lakh crore in FY 2017-18 to Rs 22 lakh crore in FY 2024-25, says Govt.
The General Service Tax (GST) was first implemented in France in 1954, with the standard rate largely being 20 per cent.
It came into being in New Zealand in 1986 at 10 per cent, before moving to 15 per cent. GST was initiated in Singapore at three per cent in 1994 and then went up to seven per cent.
“By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises”, Shri Modi stated.
The Prime Minister posted on X:
“Eight years since it was introduced, GST stands out as a landmark reform that has reshaped India’s economic landscape.
By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises. GST has also served as a powerful engine for economic growth, while fostering true cooperative federalism by making states equal partners in this journey to integrate India’s market.”
"By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises," Modi said.
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Modi : GST was a path-breaking milestone |
Annual revenue from GST, introduced on 1 July 2017, has doubled to ₹22.08 trillion in FY25 from five years ago.
The Govt's emphasis on ease of doing business, compliance and wider economic participation comes at a time Central and state governments are preparing for reforms in the GST architecture by reducing the slabs and reallocating goods and services, which are on the 12% slab, to 5% and 18%.
The move is expected to simplify the rate structure and address anomalies such as certain raw materials and intermediate products facing a higher tax burden than the finished products.
GST has brought major relief to micro, small and medium enterprises, the ministry said adding the tax regime had opened doors for easier access to credit.
The Finance Ministry said that Trade Receivables Discounting System—online platforms where small enterprises can sell their unpaid invoices to banks to get quick cash—have helped improve access to credit by these businesses.
More than 5,000 buyers and over 53 banks and 13 non-banking finance companies are registered as financers on the four TReDS platforms in the country.
The GST regime delivered substantial progress in integrating markets, enhancing compliance, and leveraging digital tools for administration and enforcement but the journey ahead demands a renewed focus on simplification of the tax structure, ensuring stability in policies and building deeper trust among all stakeholders, PricewaterhouseCoopers said on Monday in a review of the tax system.

GST collection in May this year was Rs 2.01 lakh crore. In April, it was Rs 2.37 lakh crore. The average monthly GST revenue has been Rs 1.84 lakh crore in FY25. It was Rs 1.68 lakh crore in FY24 and Rs 1.51 lakh crore in FY23. GST thus showcases the combining of grand vision with seamless execution.
In 2024-25, gross GST collections hit a record Rs 22.08 lakh crore, marking a year-on-year growth of 9.4 per cent. This rise reflects the growing formalisation of the economy and improved tax compliance.
The then Finance Minister Arun Jaitley's knack of handling the multiple meetings of GST Councils played a major role in bringing consensus among states on all aspects of GST, including compensation structure, tax laws, tax structure and rates of individual items.
Between September 2016 and July 2017, it was possible to achieve consensus in 18 GST Council meetings because of the leadership strategy of Mr Jaitley.
In 2017, in the landmark speech Pranab Mukherjee, the then President, called the GST a "disruptive change" adding that the ambitious central tax is a "tribute" to the maturity and wisdom of India's democracy.
Pranab Mukherjee also had recalled steps taken during his own tenure as Finance Minister on this key reform measure.
He also said the GST Council should continuously review the implementation and suggest suitable improvements to the new indirect taxation regime.
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Prez Pranab Mukherjee and FM Arun Jaitley : GST Milestone |
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